It's August 3, 2007 and the Subprime Mortgage Bubble is about to burst. Jim Cramer is screaming at Erin Burnett on CNBC that the Federal Reserve should Open the Discount Window. The first systemic shocks were about to hit. On Aug 9, 2007 BNP Paribas (France's biggest bank) would suspend withdrawals from three money market funds because of subprime exposure (Bear Sterns had already on June 7, 2007 halted redemptions in two of it's mortgage related hedge funds).
More information on the Subprime Mortgage Crisis Timeline can be found here and, particularly for 2007, here. I'm reading Andrew Ross Sorkin's Too Big To Fail (Cramer's rant is described on page 87) and have just complete William Cohan's House of Cards about the Bear Sterns collapse. And, I'm still grinding my way through the Financial Crisis Inquiry Commission report which is not quite as interesting!
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